Question

is it possible for Transnet to make economic loss in the short-run? Briefly motivate with the aid of a graph

Answer 1

Yes, it's possible.

Step-by-step explanation:

Transnet is a very important rail and port company in the freight sector in South Africa. If people start using rail and port services at the lowest price Transnet can suffer economic losses in the short term.

If this were put on a graph, we could use a line graph that showed Transnet's economic loss (x-axis) relative to the use of clandestine transport (y-axis). As the y axis assumes larger values, the x-axis assumes smaller values

Answer 2

Transnet is a state-owned enterprise which includes:-Rail transport
-Port management
-Logistics
-Pipeline management
And yes it is possible for Transnet to make economic loss in the short-runif people start defaulting in using trains.